topic Re: Need Advice / Help Regarding a Collection in Rebuilding Your Credit

Need Advice / Help Regarding a Collection

Anonymous — Wed, 24 Mar 2010 23:13:15 GMT

My wife has a collection and I'm trying to figure out the best course of action.

To avoid being sued (and further harrassed), we got on a payment plan with the collection agency. Originally, we were paying $200 a month (automatically deducted), but something must have happened on their end, because they then started only taking $20 a month (I'm guessing a typo).

The current balance is correct, so it's not like they are crediting $200, but only taking $20. So, at the current rate ($20 a mth), it would take forever to payoff.

Occasionally (maybe once a mth), we get a call from the CA stating we could settle the account for a reduced amount.

I'm currently thinking of sending a PFD and settling. Would this be the best the best idea? I guess I'm a bit nervous, because I don't want...

1. the collection showing recently active

2. settling would take a huge chunk of our money (currently saving for a house) and I don't want to pay only to get screwed over some how

3. there's the risk that the monthly payment goes back up to $200 (I'm not sure if they realize they've only been taking $20, but it going up wouldn't be a big deal).

Thanks all. Specific Details Below...

The CA is "Law Office of Richard Clark" / CACH LLC

The collection agency "146yc12066" was hired to collect a debt of $11,320 originally owed to "Chase Manhattan" on account number "XXXXXXXXXXXXX8204".
Collection agency [?]    146yc12066
Original balance [?]    $11,320
Current balance [?]    $8,188
Status [?]    Unpaid
Date assigned [?]    Jul 01, 2006
Date reported [?]    Feb 01, 2010
Date last active [?]    Dec 01, 2005
Date paid [?]    Not Reported
Date closed [?]    Not Reported
Original lender [?]    Chase Manhattan
Account number [?]    XXXXXXXXXXXXX8204
Type of account [?]    Not Reported
Account holder [?]    Individual
Type of credit [?]    Not Reported
Payment status [?]    Not Reported
Largest past balance [?]    Not Reported
Amount past due [?]    Not Reported
Account descriptions [?]    Not Reported

Re: Need Advice / Help Regarding a Collection

Anonymous — Thu, 25 Mar 2010 00:45:18 GMT

Ok... Possible Change of Plans...

Looking at what I believe to be the original creditor account, the date of last activity was... March 2004.

Would that mean the DOFD is before March 2004?

And if so, since the PA SOL is six years, would that mean starting April 1st, we would no longer have to pay?

Edit... The info listed is currently from the EQ report. Which after researching, apparently EQ's date of last activity is the same as the DOFD?

Sorry, new edit... I noticed on the collection, the date last active is Dec 1st 2005. Also, doing a Google search, I'm seeing the PA SOL is 4 years not 6. So, any info would be greatly appreciated. Thanks all.

Re: Need Advice / Help Regarding a Collection

Anonymous — Thu, 25 Mar 2010 01:12:22 GMT

DoFD would more than likely be before Mar 2004.

Just because the SOL has expired does not mean you do not owe the debt. It just mean they can not sue you and win if you showed up in court and used expired SOL as your defense. The debt will always remain until paid and they are allowed to attempt to collect forever.

Once you made a payment it is very possible you restarted the SOL. You need to check your states statutes.

Also, you are entitled to one free report per year, per CRA from https://www.annualcreditreport.com/cra/index.jsp

If you have not done so already I would get one from each CRA. These will be much more detailed reports.

Re: Need Advice / Help Regarding a Collection

Anonymous — Thu, 25 Mar 2010 01:17:05 GMT

@Anonymous wrote:
DoFD would more than likely be before Mar 2004.

Just because the SOL has expired does not mean you do not owe the debt. It just mean they can not sue you and win if you showed up in court and used expired SOL as your defense. The debt will always remain until paid and they are allowed to attempt to collect forever.

Once you made a payment it is very possible you restarted the SOL. You need to check your states statutes.

Thanks for the reply.

I did read / understand that the debt is still owed. I'm just thinking I may be able to use this as leverage to get them to settle and delete the account from the CRAs.

I'm looking into the the "restart" with PA. Since the credit report pulled 03.18.10 shows the date last active as 2005 under the collection, would that be any indication the SOL has not been restarted?